Bloomberg Intelligence's 'Equity Market Minute' 8/02/2018

Gina Martin Adams discusses the recent peak in margin forecasts for the S&P 500 and its potential implications. Historical trends show that peaks in operating margins often precede market corrections. Current forecasts have stopped rising, which may signal future struggles. The increase in capital spending, driven by tax reforms, is a key factor affecting margins. This video provides insights into the relationship between margin forecasts and market performance.

What historical events are associated with peaks in operating margins for the S&P 500?

• Economic booms

• Stock market corrections

• Increased dividends

• Higher inflation rates

What might indicate future struggles for the S&P 500 according to the video?

• Higher employment rates

• Increased consumer spending

• Deterioration in margin forecasts

• Rising interest rates

What is one reason given for the peaking of S&P 500 margin forecasts?

• Increased competition

• Accelerating capital spending forecasts

• Rising inflation

• Decreased consumer demand

How has tax reform affected capital spending according to the video?

• It has no impact on capital spending

• It has allowed capital spending to be expansible as an operating expense

• It has made capital spending a non-deductible expense

• It has decreased capital spending

What is the effect of increased capital expenditures on operating margins?

• It stabilizes operating margins

• It reduces operating margins

• It has no effect on operating margins

• It boosts operating margins